Knowledge Base/What is a Moving Average Convergence/Divergence (MACD)?

What is a Moving Average Convergence/Divergence (MACD)?

Moving Average Convergence/Divergence (MACD) is a momentum indicator that is calculated by subtracting the 26-period Exponential Moving Average (EMA) from the 12-period EMA.

Traders use MACD to determine whether market trends are accelerating by evaluating whether the value is above or below the signal line. The signal line is the difference between the two EMAs. MACD is often shown with a histogram that graphs the distance between the MACD and its signal line. The histogram value indicates how far the MACD is away from the signal line, and the direction in which momentum is moving.

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- Title
- What is an Exponential Moving Average (EMA)?
- Technical Indicators Tag
Technical Indicators

- Description
- Exponential Moving Average (EMA) is a technical indicator that is similar to the Simple Moving Average (SMA) but places greater weight on more recent data as it is considered more relevant or important.

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- What is a Relative Strength Index (RSI)?
- Technical Indicators Tag
Technical Indicators

- Description
- Relative Strength Index (RSI) is a technical indicator that is represented as a number between 0 and 100.

- Title
- What is Implied Volatility (IV)?
- Technical Indicators Tag
Technical Indicators

- Description
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